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(bright lively music)

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<v ->But still, there are many markets</v>

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where traditional retail is dominating.

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So why is it dominating?

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We believe it's dominating

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because traditional outlets are actually really serving

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the needs of the African consumers in those markets.

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They are flexible. They have the right offer.

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They can even offer you credits

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for the bottom part of the pyramid if need be.

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And those are things that modern retailers

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have not fully managed to address in many markets.

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And that's why they are here dominating.

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And also, that's why we believe they're here to stay

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for quite a long period.

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But the one thing that we believe is going to stay

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and is in the future of African retail

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is that it needs to be local and modern.

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What do we mean by local and modern?

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Local means we need to really address the needs

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of the consumers in those specific markets,

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in those specific communities.

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And modern means that it's not only addressing those needs,

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but it's also continuing to adapt and modernize

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in terms of digital offering, new offering,

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new ways to partner with all the ecosystem

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that is around all the retailers

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that are playing in those markets.

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So if you look at Nigeria,

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today Nigeria is completely dominated

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by traditional retailers, so 95% plus, I would say.

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If you fast-forward ten years,

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we don't see that really changing.

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We see a lot of growth in modern retail

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but it will still remain small compared to traditional retail.

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Why is that?

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For many different reasons.

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I mean, it's very difficult to get real estate

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in Nigeria to actually have a modern retail store.

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It's really difficult also to get the goods

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to the level that you want

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in a consistent way in a market.

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And so Nigeria, we think,

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is going to remain completely traditional.

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As traditional shops are here to stay

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in the landscape of African retail,

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there is an opportunity for all the players

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in the ecosystem to actually work with them

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and help them achieve even more growth

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and develop further to better serve the consumers in Africa.

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So what is the interaction

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between modern trade and traditional trade?

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Again, this is something that could actually work

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to the advantage of both parties of the ecosystem.

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So for instance, think about modern retailers.

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They could put in place some franchise models across

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the continents to actually enroll the traditional shops

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as a franchisee of theirs.

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And in this way, they could provide stable products

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to those shops, help them with promotion,

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help them with planograms,

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help them to do with many different skills

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that they don't necessarily have today.

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(bright music)